The growing demand for rubber compounds in China has prompted Hexagon Polymers to invest in a greenfield mixing operation in China. Mid-December 2005 the Board approved the investment and it was decided to build a site established as a wholly foreign-owned enterprise in Jiaonan, Qingdao. Mid-January 2006, the investment agreement has been signed with Jiaonan Municipal Government.
The project consists in building up a facility that can produce 12.000 tons of rubber compounds per year in a first phase, with a possible capacity doubling with the addition of a second line in a second phase. It is planned that the first line should be in operation during the first quarter 2007.
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